Liquidation Order for M/s. BKR Hotels and Resorts: Resolution Plans Rejected, Liquidator Appointed

The National Company Law Tribunal - Chennai Bench ordered the liquidation of M/s. BKR Hotels and Resorts P. Ltd. following the rejection of resolution plans by the Committee of Creditors. With a 95.90% vote in favor of liquidation, the Resolution Professional was appointed as the company liquidator, and the moratorium was lifted. Legal proceedings against the debtor required the liquidator's approval, and employees were instructed to cooperate. The order mandated compliance with relevant authorities and marked the commencement of liquidation proceedings under section 33 of the Insolvency and Bankruptcy Code, 2016.

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Issues:
Liquidation of corporate debtor under Insolvency and Bankruptcy Code, 2016

Detailed Analysis:

Issue 1: Liquidation Application
The Resolution Professional filed M. A. No. 232 of 2019 under section 33 of the Insolvency and Bankruptcy Code, 2016 seeking an order to liquidate the corporate debtor, M/s. BKR Hotels and Resorts P. Ltd.

Issue 2: Background and CIRP Process
The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor by the Indian Bank under section 7 of the I and B Code, 2016. The Resolution Professional took over management, invited claims from creditors, and constituted the Committee of Creditors (CoC).

Issue 3: Resolution Plan Evaluation
Several resolution applicants expressed interest, but only three submitted plans. The CoC meetings rejected plans for non-compliance with the I and B Code, 2016. Settlement proposals were considered but did not materialize.

Issue 4: Decision for Liquidation
With no viable resolution plan received, the CoC decided to recommend liquidation of the corporate debtor. An electronic voting process resulted in a 95.90% vote in favor of liquidation.

Issue 5: Order for Liquidation
The Tribunal, in exercise of powers under section 33 of the I and B Code, 2016, ordered the liquidation of M/s. BKR Hotels and Resorts P. Ltd. The Resolution Professional was appointed as the company liquidator, and the moratorium declared under section 14 ceased to have effect.

Issue 6: Legal Proceedings and Company Operations
No legal proceedings could be initiated against the corporate debtor, except with the liquidator's approval. The order discharged officers and vested powers with the company liquidator. Employees were directed to cooperate, and the liquidator could charge fees as per regulations.

Issue 7: Compliance and Disposal of Application
The order required sending copies to relevant authorities for compliance. The liquidation proceedings against the corporate debtor were initiated based on the Resolution Professional's application under section 33 of the I and B Code, 2016.

This detailed analysis covers the key aspects of the judgment concerning the liquidation of the corporate debtor under the Insolvency and Bankruptcy Code, 2016, as decided by the National Company Law Tribunal — Chennai Bench.

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